25th Anniversary of Armenian Studies Program, California State
University - Fresno

February 9, 2003

Recent Developments in Armenia, Armenia’s Foreign Policy and Regional Security

Dr. Arman Kirakossian

It is an honor to speak before a distinguished audience today. In my three years as Armenia’s Ambassador to the United States, I have made numerous trips outside Washington to meet with the Armenian American community members, state and local government officials, businesspeople and investors, and I have spoken at a different venues, such as Churches and community centers and chambers of commerce. I greatly value these meetings because as we discuss a variety of issues facing Armenia, the Armenian people in general, the Armenian American community, and the U.S.-Armenian relations, I appreciate your perspective, insight, and concerns. In turn, I feel it is my responsibility as Armenia’s representative in this country not only to facilitate the dialogue between the Governments of Armenia and the United States, but also to bring together the Armenian American community and Homeland.

This is my first visit to Fresno, and it is a special honor for me to be here. Fresno is home to an important Armenian American community that stands out for its intellectual potential. It is one of the first and well-established Armenian communities in this country. Its status as a primary Armenian cultural and educational center owes much to the brilliant writer William Saroyan. There is a personal dimension for me here: twenty-five years ago my father John Kirakossian, who was then Armenia’s Foreign Minister, visited Fresno. I still remember vividly how impressed he was with his trip, the people he met here, and the meetings he had. So, it is a privilege for me to be able to visit Fresno and to retrace my father’s path here, figuratively speaking. I am grateful to the Armenian Studies Program at California State University – Fresno for providing this opportunity to visit and address this banquet.

As I look back at Armenia’s development in the last three years, there has been definite progress in many areas of life, and the general direction of the political and economic developments are encouraging. When I arrived in Washington, D.C. as the newly appointed Ambassador to the United States, it was November 1999, and Armenia was reeling from the effects of a severe domestic political crisis following the October 1999 assassinations in the Armenian parliament. That crisis was resolved peacefully and jointly by the executive and legislative branches, and the last three years have been marked by political stability and greater economic growth.

The year 2002, in particular, was a year of stability in Armenia’s domestic politics, which is the guarantee of the Homeland’s general development. As we hold the presidential and parliamentary elections in 2003, we hope that the electoral process will further strengthen the democratic process and stability in Armenia.

The political stability goes hand in hand with the economic growth. The year 2002 was a year of economic growth in Armenia, with 12.5% GDP growth rate, 50% rise in exports, 16% growth of industrial production, and a 42% growth in construction. A significant part of the new construction activities was financed by the Lincy Foundation of Armenian American Kirk Kirkorian. Jewelry production grew by 200% while 53 diamond-polishing companies exported $150 million worth of diamonds from Armenia. The foreign investment in Armenia grew by 12%.

Major privatization projects were inaugurated in Armenia in 2002, including the electricity distribution network, which is now managed by the well-established international firm Daewoo Engineering. Leasing the Zvartnots International Airport and the “property for debt” deal with the Russian Government were other examples of engaging foreign businesses in the Armenian economy.

Armenia’s accession to the World Trade Organization was perhaps one of the most important events for the Armenian economy in the recent decade. Armenia’s integration into the global market is a top priority, and the WTO accession came as a result of arduous and consistent efforts by the successive Armenian governments. The accession is important not only for bringing Armenia closer to the global trading patterns or for its symbolic value for Armenia’s political and economic image, but also for augmenting the Armenian economic legislation and thus improving the business climate in the Republic.

Despite the many accomplishments, we still face numerous challenges in Armenia, especially in the social sector. In making our dream of a strong, stable, and prosperous Armenia come true, it is necessary to strive towards a healthy democratic environment, coordinate our efforts, and display a common will. In the coming year, the Armenian government will continue to improve the business environment and reduce tax burden to allow domestic and foreign business leaders and investors to implement business projects in Armenia. The revitalization of the Armenian economy requires serious investments, both domestic and foreign. The presence of foreign companies in Armenia and creation of new jobs will help the government to finally stem the outflow of population from Armenia and improve the living standards.

Nevertheless, the stable economic and political environment creates a positive foundation on which to conduct a responsible foreign policy. Let me briefly outline the geopolitical and security developments in the South Caucasus region. The dissolution of the Soviet Union created a principally new situation in the region. The interests of many powers often diverge openly, and Armenia’s position in this context is to find benefits in smoothing over the disagreements between the powers rather than in playing them off against one another, and to stake its long-term political dividends on pursuit of cooperative relations with all willing neighbors and all economic, political, or military organizations with interests in our region. Given Armenia’s size, relative proximity to troubled regions of the world, and the geopolitical context I have described above, this approach to our foreign policy really has no alternative.

Let me now turn to the most important security and foreign policy challenge facing Armenia today – the Nagorno Karabakh conflict. The unresolved nature of this conflict continues to affect the regional stability in the Caucasus. There has been no progress since the presidential summits in Paris and Key-West, FL, because Azerbaijan retreated from the arrangement there. Moreover, the statements of President Aliyev, his Defense and Foreign Ministers, other members of the government, and the opposition parties pass dangerous signals about Azerbaijan preferring to settle the Nagorno Karabakh conflict by use of force, a goal they fell so short of in 1992-1994.

The irresponsible statements by the Azerbaijani politicians, the hard-line nationalist rhetoric from Baku have had the effect of igniting war hysteria and contribute to the idea of inevitability of the resumption of hostilities in this conflict. This is a development condemned both in Armenia and by the international mediators. The ceasefire regime on Artaskh-Azerbaijan line of conflict is based on the goodwill of all parties, and the war propaganda in Azerbaijan will undermine the confidence in its ability to abide by the ceasefire regime. So, we hope that Azerbaijan will realize that the resumption of hostilities will not be of benefit to any party to the conflict.

Despite everything, Armenia remains committed to a peaceful settlement of the Nagorno Karabakh conflict. As you know, the conflict settlement process slowed down pending the end of the electoral season in Armenia and Azerbaijan. We hope to be able to move forward with a comprehensive peace plan, bringing a permanent peace to the people of Artsakh and securing the stability of the region after the elections.

Let’s turn to another important neighbor we have in the region, the Republic of Turkey.
The Genocide is a difficult issue that affects the development of a bilateral relationship between Armenia and Turkey, which will be a major factor securing stability and regional cooperation in the Caucasus. Armenia is ready to continue interstate dialogue with the Republic of Turkey and establish diplomatic relations. In 2002, the Foreign Ministers of Armenia and Turkey, Vartan Oskanian and Ismael Cem, met three times to discuss issues of mutual concern. The meetings were productive, but Turkey has a new government now. We receive many contradictory signals about their intentions. Let me just reiterate that we are ready to deal with them when they are ready.

The international recognition of the Armenian Genocide remains on agenda of the Armenian diplomacy. We are convinced that a greater acknowledgement of the Armenian Genocide by the community of nations will serve the purpose of preventing future genocides, and will ultimately promote the understanding of the Armenian Genocide in Turkey proper. Historic justice, reconciliation, and peaceful coexistence are not ephemeral concepts but essential parameters in the rapprochement between the Armenian and Turkish peoples.

Let us now turn to another power with major stake in our region, Russia. The Armenian-Russian cooperation and strategic partnership reflect not only the traditional friendship between our peoples, but also our interest in strengthening regional security. New forms of cooperation that are outlined in the context of the increasing cooperation between Russia and the United States can serve as an effective instrument to counteract the threats to our regional security and a good addition to the already existing structures.

Armenia has defense cooperation with Russia, including a Russian military presence, which, of course, is not aimed against any third country. This cooperation is based on shared interests of both countries, and is fully consistent with geopolitical and humanitarian standards of the Caucasus. The prevailing security environment in the absence of any other viable alternatives strongly suggests such cooperation. At the same time, Armenia cooperates with NATO through its Partnership for Peace program, and in 2003 Armenia is going to host a NATO military exercise for the first time. We have to realize that there could be some transformations in the region's geopolitics. We advocate their evolutionary and natural development.

Another player in our region is Iran, which has its own potential, which the Caucasus countries cannot objectively discount. Iran has its interests in our region and has pursued them in a responsible way, with utmost respect for internal affairs of each country. Armenia shares a common border with Iran, and has good economic and commercial links with that country. During the difficult years of early independence, Iran helped Armenia by providing a reliable link to the outside world.

Armenia enjoys friendly and firm relations with Georgia, enforced by the presence of a large Armenian community in Georgia. The amicable Georgian-Armenian relations will be one of the pillars of the emerging South Caucasus security framework. Stability and security of Georgia is in the best interests of Armenia, and we help Georgia as much as we can. Both Iran and Georgia provide the only outlet to the world for Armenia.

Although Armenia’s geography places it at the crossroads of Europe, Central Asia, and Middle East, culturally we Armenians belong to Europe, and it is only natural that the Republic of Armenia aspire to join the common European community of nations. Europe is entering a new period in its evolution, with unprecedented institutional changes taking place. It is important to proceed so that new divisions are not introduced in the new Europe, and it is important to protect the rights of peoples, nations and individuals.
We consider the OSCE the preeminent Euro-Atlantic institution, with unique characteristics of inclusiveness, its multi-dimensional range of concerns and its flexibility for cooperative action. Since January 2001, Armenia has joined the Council of Europe, and we have made a number of commitments before our new partners in regards to Armenia’s legislation and democratic practices. The face of Europe has changed in the last twelve years, and universal values of democracy, human rights and liberties, respect for national freedom – values we Armenians aspire towards – have become the building blocs of new Europe.

Having addressed Armenia’s integration in Europe, I will now cross over the Atlantic. As Ambassador to the United States, I can state firmly that relations between our countries are excellent. In fact, Armenia has always felt the support of the United States people and their elected representatives in the U.S. Congress for Armenian issues. The people of Armenia also recall with gratitude the invaluable assistance rendered during the 1988 earthquake in Armenia and since regaining independence in 1991. As a historian, I know that the American involvement with Armenia and Armenian issues dates back to nineteenth century when American missionaries, charity officials, and civic activists helped the struggling Armenian population in the Ottoman Empire. Hundreds of thousands of Armenians fleeing from massacres and the Genocide in the Empire found refuge in this country in twentieth century. The Armenian Americans have become loyal citizens of this country, fighting to defend its freedom and contributing to its economic, political, and cultural development.

The Armenian reaction to the events of September 11 underscored the unique and human nature of U.S.-Armenian relations. Our hearts went to the American people during the tragic days of last September. Armenia has helped and is helping the United States-led campaign against international terrorism in Afghanistan. The U.S.-Armenia relations will only grow stronger in the years to come. We are looking forward to continuing political and security dialogue, promoting the bilateral trade and commercial ties, which benefit American and Armenian companies, and other issues of bilateral interest, such as establishment of a free trade arrangement between out countries. The U.S.-Armenian military cooperation programs have become a new component of the Armenian security framework and are fully in compliance with Armenia’s complementary foreign policy.

USATF is an important mechanism of discussing bilateral issues that affect all sectors of the Armenian economy in a positive manner. We hope that the U.S. assistance to Armenia will continue at the same level in the near future. The United States, including the State of California, are an important market for the Armenian products; in fact, the U.S. is Armenia’s fifth largest trading partner. The Armenian American Chamber of Commerce organized Second exhibit of the Armenian products in Glendale, CA in September 2002, under the auspices of the Armenian Consulate General, with more than 70 participants representing a range of industries from Armenia. The number of participants nearly doubled compared to the first exhibit in 2001. The State of California passed a legislative decision to open a California Regional Trade Office in Yerevan, and we hope that it will be opened in the near future.

The Armenian American community, as one of the most politically active, influential, and patriotic segment of the Diaspora continues to play an important role in supporting the homeland and advancing the Armenian agenda. The Armenian American political, lobbyist, charity, and cultural organizations and associations, the Armenian Apostolic Church of America, other Armenian religious groups and denominations, business leaders, media, individual benefactors and community members have brought their invaluable support in strengthening U.S.-Armenian relations, defending the interests and dignity of our Homeland Hayastan, humanitarian and pro-Armenian work, as well as supported and assisted the Armenian diplomatic missions in the United States.

It is by virtue of historic tragedy that our people now coexist in two major segments – the Homeland and the Diaspora. Out of great adversity come experience, maturity, and opportunities for change. Further development of Homeland-Diaspora relations is of utmost importance to the implementation of the strategic objectives of the Armenian people, which are to build a strong, economically successful, stable, and democratic homeland where justice and progress rule supreme and to strengthen the Armenian identity and culture in the Diaspora. The Second Armenia-Diaspora Conference that was held in 2002 stood out for the number of participants and practical substance of the discussions. We hope that the Second Conference will deepen the cooperation and collaboration between the Homeland and the Diaspora.

One area where we can strengthen the ties between the Homeland and the Diaspora is Armenian Studies. As a historian and Armenian studies scholar, I am convinced that we cannot afford not to think about the future of Armenian studies in Armenia and in the Diaspora. Armenian studies should have no geographic or ideological boundaries and be free of constraints and self-imposed limitations. This does not mean we Armenian studies specialists cannot coordinate or organize our efforts as to work in the same direction or cannot have a common scientific position. At the same time, all of us should bear in mind that Armenia’s geopolitical situation is still fragile, precarious and complex. So, Armenian studies researchers, especially those among us who specialize in the political studies should approach the political issues responsibly, scrupulously, and seriously as the result of our activities will also affect the objectives of the Armenian foreign policy.

It is with deep regret that I read mutual accusations and unhealthy dialogue between the historians and Armenian studies scholars in the Diaspora and Armenia that seems to be given extraordinary coverage in the Armenian media. Healthy scientific critique, at conferences or on the pages of scientific journals and magazines, can only benefit the further development of Armenian studies but what we have witnesses degenerated into labeling and name-calling, and the resulting environment is not simply harmful and unpleasant for all of us, but it might have negative consequences for our field of science, and for the Homeland-Diaspora relations. Yerevan State University is holding a major Armenian Studies conference this September, and I urge everyone to attend to be able to contribute constructively to Armenian studies and transform the unhealthy criticism into legitimate scholarly debate.

As the Ambassador of the Republic of Armenia to the United States, as an Armenian historian, I am prepared to assist – in any way I can – the efforts to strengthen the cooperation and collaboration between the scholars in Armenia and the U.S. and to resolve issues relating to the future of Armenian studies in general.

I congratulate Fresno State on the 25th anniversary of the Armenian Studies Program, and I wish it success in academic endeavors.

Thank you